Aerospace and technology company Vertical Aerospace has finalised an investment agreement with Mudrick Capital that secures up to $50m in new funding.
This move is set to bolster the company’s financial health and accelerate its “Flightpath 2030” strategy.
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Mudrick Capital’s funding commitment includes $25m in upfront funding and an additional $25m backstop, reduced by any third-party fundraising.
The transaction also involves the conversion of $130m of debt into equity, reducing Vertical’s debt and enhancing its financial position.
Mudrick Capital agreed to a conversion price of $2.75 per ordinary share and fixed the price for the remaining $130m at $3.50 per ordinary share.
Additionally, the loan repayment date has been extended by two years, offering further stability through Vertical’s certification programme.
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By GlobalDataDuring an extraordinary general meeting (EGM), shareholders supported new governance changes, including a board majority of independent directors and proportional director nomination rights for Mudrick Capital.
Mudrick Capital Management founder and chief investment officer Jason Mudrick said: “Vertical is revolutionising how the world moves, and we are proud to play a pivotal role in positioning the company for success.
“We look forward to continuing to partner with Vertical’s exceptional team and contributing capital market and other expertise in helping to bring their groundbreaking product offering to reality.”
Vertical Aerospace’s “Flightpath 2030” was unveiled last month as a strategy to achieve market leadership in electric aviation by the end of the decade.
The company’s piloted flight test programme, now in Phase II, is a cornerstone of this strategy.
The plan leverages the company’s progress, insights from the flight test programme, engagement with the Civil Aviation Authority (CAA), and meticulous planning by the leadership team.
Vertical Aerospace CEO Stuart Simpson said: “Ending this momentous year with a finalised funding commitment and strong shareholder backing is a tremendous milestone.
“This moment sets us up perfectly for our biggest year yet – with new investment, piloted testing progress and major technological developments all on the cards.”
In 2020, Vertical Aerospace selected Dassault Systèmes’ 3DEXPERIENCE platform to design its next-generation Seraph electric vertical take-off and landing (eVTOL) aircraft.
Dassault Aviation expanded the adoption of the 3DEXPERIENCE platform across all its programmes.
